This article will reflect on the compensation paid to Chris Wolfe who has served as CEO of PowerFleet, Inc. (NASDAQ:PWFL) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for PowerFleet

How Does Total Compensation For Chris Wolfe Compare With Other Companies In The Industry?

Our data indicates that PowerFleet, Inc. has a market capitalization of US$176m, and total annual CEO compensation was reported as US$1.6m for the year to December 2019. Notably, that's an increase of 67% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$325k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$961k. This suggests that Chris Wolfe is paid more than the median for the industry. Moreover, Chris Wolfe also holds US$1.5m worth of PowerFleet stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. PowerFleet pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

PowerFleet, Inc.'s Growth

Over the last three years, PowerFleet, Inc. has shrunk its earnings per share by 27% per year. Its revenue is up 98% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has PowerFleet, Inc. Been A Good Investment?

With a three year total loss of 7.8% for the shareholders, PowerFleet, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Chris is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, looking at EPS and total shareholder returns, it's tough to say PowerFleet is in a sound position, considering both metrics are down. In contrast, revenue growth for the company has been showing a positive trend. Few would argue that it's wise for the company to pay any more, before returns improve.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for PowerFleet you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.